As dairy farmers struggle with low milk prices, U.S. Sen. Kirsten Gillibrand is proposing a solution that could provide some support for farms.
Gillibrand, D-N.Y., unveiled legislation Tuesday that would establish $23.34 per hundredweight as the price floor for milk. It would be modeled after the U.S. Department of Agriculture’s Price Loss Coverage program for corn and soybean farmers.
Under Gillibrand’s bill, if milk prices drop below the floor it would ensure insurance payments are made to help struggling dairy farmers. Farmers would eligible to receive 45 percent of the difference between the price floor ($23.34 per hundredweight) and the current all-milk price.
As of January, the all-milk price was $16.10. If Gillibrand’s plan was in place, the difference between the price floor and the all-milk price would be $7.24. The payment for farmers would be $3.26 per hundredweight. The maximum payment for one month of production would be $13,583, according to Gillibrand.